N.B. Projects Higher Surplus For 2019-20

The New Brunswick government is projecting a higher surplus for the 2019-20 fiscal year than first expected.

First-quarter results released Wednesday project a $38-million surplus, up from a budgeted surplus of $23.1 million.

The net debt is also forecast to decrease by $63.8 million instead of $49.2 million during the 2019-20 fiscal year.

Finance Minister Ernie Steeves said the numbers show the province is on the right financial track and is starting to see positive results.

“Let’s remember that we’re not in a fiscal position to spend more at this point,” said Steeves. “We need to continue to make responsible choices and get our fiscal house in order so that we can reduce our net debt, lower the tax burden on New Brunswickers and grow our economy.”

Higher Revenue, Expenses

Revenue is projected to be $61.3 million higher than budget, mainly due to additional federal funding under the Building Canada Fund — Gas Tax Transfer and projected recoveries under the Disaster Financial Assistance Program.

Expenses are forecast to be higher by $46.4 million, mainly due to increased project expenses resulting from the additional federal funding and anticipated higher expenses in the health and public safety departments.

While revenue is expected to be up in many areas, cannabis-related revenue is down $7.2 million due to lower-than-projected sales.

Steeves said Cannabis NB has to have a more profitable business plan and the government is working toward that.

“Edibles are coming in later on this year, probably not until December, but that is going to help some,” he said. “The supply situation is better now, the pricing is getting better, but there still has to be probably some more changes.”

For the first time, New Brunswick also released the quarterly actual results, which show a surplus of $107.4 million during the first quarter.

Steeves said the change demonstrates his government’s commitment to enhancing transparency and responsible financial management.

“It is rather cumbersome, is the word that was used by times because it’s harder to do, but we feel that it’s important to be transparent with the public and it gives them an actual snapshot … of where we are right now,” he said.